The process of dry-crushing and amalgamation with Ryerson's apparatus, described in my last report, has been rejected, after trial upon a large scale. The machinery gave favorable results at the Little Bear Valley mill, where I saw it in operation in 1868; but it has been found in many respects unsuited to extensive operations. It was always acknowledged to be more expensive than the ordinary California process. The necessity of dry-crushing, to begin with, was a great economical disadvantage. In spite of the claims of numerous inventors, I have yet to see a dry-crushing apparatus that will accomplish as much with the same power as a good stamp-battery, crushing wet. The items of repairs, danger from fire, and noxious effects of quicksilver fumes, which could not be calculated from working results in a small mill, have been found extremely serious in larger operations, and constitute a considerable addition to the acknowledged costs of the Ryerson process. It should be pointed out that many of the drawbacks to that process are of such a character that they are not ameliorated by a decrease in the cost of labor; while, on the other hand, the ordinary stamp-mill process is, by this cause and by constant improvement in machinery, growing steadily both cheaper and more effective. Its principal deficiency, the loss of sulphurets, is not remedied by the Ryerson method; and the subsequent treatment of this material by concentration and chlorina nation, pau-amalgamation, or otherwise, is as easy in one case as in the other. The experience of the Oaks and Reese mine, in the immediate neighborhood of the Mariposa estate, where improved wet amalgamation is very successfully used, led to a comparative test in November last, at the Benton mills, between the wet and dry methods, the consequence of which, I am informed, was the rejection of the latter.

The production of bullion during 1869 was considerably hindered by these experiments and by the necessary dead-work, and did not, so far as I can learn, exceed $100,000. The company began the year 1870 under better auspices, and is now reported to be producing about $1,000 per day, with constructions in progress that will largely increase the capacity of the mills, which is still inadequate to the production of the mines. More exact statements will be made in the company's annual report in March, 1870.

The Oaks and Reese mine, under the skillful management of Mr. Cassell, has continued to produce bullion, at the rate as reported, of $30,000 monthly, throughout the year.

I have no reports of other important operations in the county.

CHAPTER IV.

TUOLUMNE COUNTY.

Mining has not been very flourishing in this county during the last year. The following letter from W. G. Heslep furnishes such general remarks, as will permit a clear insight into the circumstances surrounding mining in the county at present:

JAMESTOWN, August 25, 1869.

DEAR SIR: In filling up your blank schedules I have aimed to give a true estimate of the facts wished for in the schedules. They may not be strictly correct in every particular, but sufficiently so for all practical purposes. The mining interest in this county at present is somewhat depressed, owing to various causes; many of the owners are men without capital and are dependent entirely upon the yield of the mines to meet

all demands for exploring, developing, and all working expenses. Speculation in mining property the last few years has had a depressing influence. Discoveries in other portions of the country have taken away capital and population; legitimate mining has been to some extent destroyed by unprincipled speculators, who have practiced the vilest frauds upon unsuspecting parties, selling worthless mines and expending large amounts of money without the least prospect of reimbursement. Three-fourths of the mills in the county are lying idle at present owing to various causes; in most cases, however, it is only temporary. I have no data to give me an idea of the amount of bullion produced, but my impression is that it is not over one-half of what it has been during the last two years.

Hoping that the facts given will assist you some,

I remain, yours, truly,

R. W. RAYMOND, Esq.

W. G. HESLEP.

List of mills in Tuolumne County mining district, Tuolumne County, on July 1, 1869, reported by W. G. Heslep.

Estimate of costs of mining and reducing ores in Tuolumne County district, Tuolumne County, California, reported by W. G. Heslep, July 1, 1869.

Wages of first-class miners: Three dollars per day.

Wages of second-class miners: Two dollars to two dollars and fifty cents per day. Wages of surface laborers: Two dollars; Chinese, seven to nine dollars per week. Cost of lumber: Two dollars per thousand.

Cost of mining timber: Four cents per running measure, twenty-five dollars per thousand.

Cost of common powder: Three dollars and fifty cents to four dollars per keg.

Cost of giant powder: One dollar and fifty cents per pound.

Cost of quicksilver: Sixty to sixty-five cents per pound.

Cost of freight from San Francisco: one and a quarter to two cents per pound.

Cost of fuel: Five dollars per cord; in timber region, three dollars.

Cost of ten-stamp mill, California pattern, including freight, erection, &c.: Eight thousand dollars.

Cost of twenty-stamp mill, freight, erection, &c.: Fifteen thousand dollars.

Minimum mining cost per ton of ore: One dollar; two dollars; four dollars.
Mines from which this is reported: Heslep, Golden Rule, Griffin.

Character of rock at those mines: Talc and chloritic slate and quartz; slate and quartz; quartz.

Depth of mines: One hundred and sixty feet; one hundred and fifty feet; four hundred feet.

Maximum mining cost per ton: Forty dollars; six dollars; six dollars.
Character of rock, &c.: Quartz, containing antimonial sulphide.
Minimum reduction cost: Three dollars per ton.

Name of mill, and number of stamps: Rawhide Mill; twenty stamps.
Character of process employed: Battery amalgamation and pans.
Maximum milling cost: Ten dollars.

Name of mill, and number of stamps: Confidence Mill; twenty stamps.
Character of process employed: Battery amalgamation and pans.
Average mining cost per ton: Four dollars.

Average milling cost per ton: Two dollars.

Average yield of ore: Fifteen dollars.

Remarks.-A water mill with pans and ter stamps will cost $10,000. Without pans $8.000. Steam mill with pans $12,000. Without, $10,000. Some of the above is estimated, but as near the facts as was possible to ascertain in the short time allowed me. Return of the production of gold and silver for the Golden Rule mine, Tuolumne County, California, for the year ending July 1, 1869, reported by Wm. Bosworth.

Mill, Golden Rule; owner, corporation; location, Tuolumne County, two and a half miles south of Jamestown; mine, gold; number of tons of ore, 3,670; average yield, $6 05; total product, $2,204 32; time of running, 280 days; average number of stamps running, 15; whole number of stamps in mill, 15; power, water.

Remarks.-This company is noted for having paid dividends for several years on low grade quartz.

Estimate of the costs of mining and reducing ores at Golden Rule Mine, Tuolumne County, reported by W. Bosworth, president of the company, July 1, 1869.

Wages of first-class miners: Three dollars per day.

Wages of second-class miners: Two dollars and fifty cents per day.
Wages of surface laborers: Two dollars and fifty cents per day.

Cost of lumber: Twenty-five dollars per thousand.

Cost of mining timber: Nine to twelve cents per running foot.

Cost of common powder: Three dollars per keg.

Cost of quicksilver: Sixty-five cents per pound.

Cost of freight from Stockton: One and one-eighth cent per pound.

Cost of fuel: Oak, five dollars per cord.

Cost of ten-stamp mill, California pattern, including freight, erection, &c.: Seven thousand dollars-water power.

Cost of twenty-stamp mill, freight, erection, &c.: Fourteen thousand dollars.

Minimum mining cost per ton of ore: Three dollars and fifty cents.

Mine from which this is reported: Golden Rule.

Character of rock at that mine: Slate and quartz.

Depth of mine: Two hundred and ten feet.

Milling cost: From one dollar and fifty cents to one dollar and seventy-five cents per ton. Amalgamation in battery.

Character of process employed: Battery, shaking tables, copper plates, and arrastra. Average yield of ore: Six dollars and five cents per ton, (from the secretary's report for twelve months ending July 13, 1869.)

Exhibit of producing mines in Blue Gulch district, Tuolumne County, California, on July 1, 1869, reported by Peter Musser.

The claims are on the mother lode. Remarks.-The Shawmut and Clio mines are not worked. The Eagle has been worked since 1864 until last fall, when an excess of water compelled the company to put up pumps, also making repairs on the mill. This we have done, and will work the mine again next month. We put up thirty-foot overshot water-wheel for the pump at mine. We also retimbered the shaft. Cannot give date of discovery nor organization of this district. Population small. Chinese camp buys placer gold-$3,000 per week. Eagle mine work three chimneys together, three hundred feet long. Vein matter, twelve feet wide. Pay ore from two to six feet wide. Pay on foot wall banded quartz; between pay and hanging wall, quartz and slate, with some gold; between pay and foot-wall, soft and very black slate, three inches to two feet wide, easily removed with a pick. The $10 54 per ton is the average of 2,200 tons.

Estimate of cost of mining and reducing ores in Blue Gulch district, Tuolumne County, California, reported by Peter Musser, July 1, 1869.

Wages of first-class miners: Three dollars per day.

Wages of second-class miners: Two dollars and fifty cents per day.
Wages of surface laborers: Two dollars and fifty cents per day.

Cost of lumber: Twenty-five dollars per thousand feet.

Cost of mining timber: Ten to fifteen cents per foot.

Cost of common powder: Two dollars and seventy-five cents per keg.

Cost of giant powder: One dollar and twenty-five cents per pound.

Cost of quicksilver: Sixty to seventy cents per pound.

Cost of freight from San Francisco now: Seven-eighths per hundred-weight.

Cost of fuel: Wood, four dollars per cord.

Cost of ten-stamp mill, California pattern, including freight, erection, &c.: Eight thousand to nine thousand dollars, (estimated.)

Cost of twenty-stamp mill, freight, erection, &c.: Fourteen thousand to fifteen thousand dollars.

Minimum mining cost per ton of ore: Five dollars and fifty cents per ton, including hoisting and pumping.

Mine from which this is reported: Eagle Mine, Blue Gulch, Tuolumne County. Character of rock at that mine: Banded quartz.

Depth of mine: Three hundred and seventy-five feet.

Maximum milling cost: One dollar and twenty-five cents per ton.

Name of mill, and number of stamps: Eagle Mill, ten stamps, free water.

Character of process employed: Stamps and copper plates.

Average yield of ore: Ten dollars and fifty-four cents per ton.

Remarks.-Power at mill, free water, sufficient to drive fifty stamps. At mine, hoisting, thirteen-horse steam-power. Pumps, five-inch plunger. Power, thirty feet overshot water-wheel. Capacity of wheel one hundred inches water.

Our sulphurets pay, by chlorination, $200 per ton. Quantity two per cent., or two tons to every one hundred tons of ore.

Exhibit of Tuolumne Mountain mine, Tuolumne County, on the 1st day of July, 1869, reported by secretary of company.

Name, Tuolumne Mountain; owner, incorporated; character, vein; course, northeast to southwest; dip, 300 west; dimensions of claim, 1,650 feet; country rock, slate and granite; vein matter, a quartz mixed with cap rock, decomposed quartz, and slate; ore, a gray and blue quartz, showing free gold, and a large quantity of sulphurets; average value per ton, $30; mills, one. The mill is very poor and inefficient-light stamps; product for the year ending July 1, 1869, gross, $30,000; net, $18,000. Not worked steadily.

Estimate of costs of mining and reducing ores at Tuolumne Mountain Gold and Silver Mining Company mine, Tuolumne County, California, reported by

Population of district: Two hundred.

Wages of first-class miners: Fifty dollars per month and found.

July 1, 1869.